To Find the Number of Units That Need to Be

question 180

Multiple Choice

To find the number of units that need to be sold in order to breakeven or generate a target profit, the formula used is

• A)(fixed expenses + operating income)÷ contribution margin per unit.
• B)(fixed expenses + operating income)÷ contribution margin ratio.
• C)(fixed expenses - operating income)÷ contribution margin ratio.
• D)(fixed expenses - operating income)÷ contribution margin per unit.

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Definitions:

Motivational Conflict

A situation where an individual faces competing desires or goals, leading to emotional or psychological tension.

Environment

The natural world or ecosystem in which living organisms interact and depend upon for survival, including elements like air, water, soil, and climate.

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A situation where an individual faces competing desires or goals, making it challenging to decide on a course of action.

Renovate

The process of renewing or restoring something, especially a building, to a good state of repair or to a new and improved condition.